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HomeMy WebLinkAbout7C, Mpls North Convention and Visitors Bureau Discussion ~ ~HILLS MEMORANDUM DATE: March 10, 2008 TO: City Council FROM: Noah A. Simon, Assistant City Administrator SUBJECT: Visit Minneapolis North Convention and Visitors Bureau, the City of Arden Hills and the 3% Lodging Tax Requested Action For Council to discuss whether or not it wishes to continue to participate in this agreement and collect the 3% tax or opt out of the agreement in 2010 (the agreement has specific language regarding termination). Backl!round In 2004, the City entered into an agreement with Visit Minneapolis North Convention and Visitors Bureau to collect the lodging tax enacted by the City of Arden Hills to fund a convention and visitors bureau in accordance with Minnesota Statutes (the agreement is attached to this agenda item). The tax is 3% of the gross monthly receipts minus exclusions. The City retains 5% of the tax for administrative purposes. The mission of Visit Minneapolis North is attached for reference. In December 2007, the Super 8 Motel of Arden Hills sent a letter (attached) to the City requesting the City terminate the agreement. Interim Administrator Jim Willis spoke with Vik Bhartia and he repeated his request for the City to terminate the agreement. Until recently, there were two hotel/motels in Arden Hills-the Holiday Inn has recently closed. The purpose of the lodging tax is to promote and attract visitors and promote spending and economic growth in within the eleven member cities. The eleven communities are: Arden Hills, Anoka, Blaine, Brooklyn Center, Brooklyn Park, Coon Rapids, Fridley, Ham Lake, Maple Grove, Mounds View and Shoreview have all adopted the same tax. In addition, the cities of Bloomington, Minneapolis, St. Paul, Apple Valley, Shakopee and Roseville have their own convention and visitors bureaus. The tax that is collected is added to the total room rate and is not a tax on the business. In the previous 13 months (Jan 07 to Jan 08), the City collected a total of $68,379.88 and retained $3,4l8.98. CONVENTION AND VISITORS BUREAU AGREEMENT THIS AGREEMENT made and entered into this JLe- day of "'teCI'J'1be-( , 2004 by and between the City of Arden Hills, a Minnesota municipal corporation hereinafter referred to as "City", and the Minneapolis Metro North Convention and Visitors Bureau, a Minnesota non-profit corporation, hereinafter referred to as the HBureau". WITNESSETH: The Ciiyhas enacted a tax on lodging with the City to fund a convention and visitors bureau in accordance with Minnesota Statutes, Section 469.190. The Bureau has the staff, facility, and experience to carry out the objectives of promoting tile City as a tourist and convention center. The City desires the Bureau to provide the services of a convention and visitors bureau on behalf of the City, and the Bureau desires to provide those services. NOW, THEREFORE, in consideration ofthe mutual covenants and promises contained herein, sufficiency of which is hereby acknowledged, the parties hereto agree as follows: I. Term. The term of this Agreement shall commence on the 1st day of January, 2005 and continue until terminated by mutual agreement or by one of the parties hereto in accordance with the following provisions: a. The City may terminate this Agreement on the first anniversary of the Agreement provided that the City provides written notice to the Bureau of its intent to terminate no later than December 31, 2005. The notice may be rescinded at any time prior to the first anniversary date. Thereafter, this Agreement may be terminated only bymutual agreement of the parties or in accordance with the provisions of Subsection b of this Section. b. Either party may terminate this Agreement by providing written Notice to that effect to the other party. Such termination shall be effective on December 31 of the calendar year following the year in which the notice of termination was given. 2. Services Rendered bv Bureau. The Bureau shall fumish the following servlces: a. Mormational services in answering inquiries about the City via mail, computer, telephone and personal contacts. b. Provide planning, coordinating, and registration assistance to organizations and businesses. c. Supply support matelial including, but not limited to, name badges, City maps, typewriters, accommodations list, and information in general. d. Prepare and present audiovisual presentations to groups to attract visitors to the City. e. Distribute brochures, maps, and guides of the City to potential visitors and meeting planners. f. Provide representation at trade shows, conventions, and exhibits to attract new visitors to the City. g. Promote the City as a convention center for Minnesota by regional and statewide advertising of the City's hospitality industry and attractions. 3. Charges. Basic services provided pursuant to Paragraph 2 of this Agreement shall be without charge to the person or organization utilizing said services unless authorized by contractual agreement or action of the Bureau Board of Directors. 4. Budget. The Bureau shall submit its annual budget for review by the City Council on or before the first day of October of the year preceding the effective date of the budget. Such budget shall detail specifically the uses to which monies received shall be spent to provide the services described in Paragraph 2 of this Agreement. It is understood between the parties that the actual revenues being generated under Paragraph 5 may vary from the amount anticipated in the budget. For this reason it is agreed that thc budget may be modified without prior consent of the City Council, providing that any adjustments shall be made by a two-thirds (2/3) vote of the Bureau Board of Directors. Notwithstanding any other language to the contrary the Bureau shall not expend any sums beyoud its revenue. 2 5. Funding. On the 15th day of each month, the City shall remit to the Bureau, for funding of the Bureau, 95% ofthe lodging tax payments received by the City, less refunds, in the preceding month during the term of this Agreement. 6. Verification ofExnenditures. The Bureau will provide the City a copy of the Bureau's monthly financial statements, showing monthly, year to date, and budget figures, properly itemized and verified by the Director ofthe Bureau. The Administrator and/or Finance Director of the City shall have the right of access to the books and records of the Bureau at any time during normal business hours to audit any item of revenue or expenditure. 7. Hold Harmless. Any all employees of the Bureau or any other persons, while engaged in the performance of any service required by the Bureau under this Agreement, shall not be considered employees of the City, and any or all claims that may or might arise under the Workers' Compensation Act of the Statc of Minnesota on behalf of said employees or other persons while engaged, and any and all claims made by a third party as a consequence of any act or omission on the part ofthe Bureau, or its agents or employees or other persons while so engaged in any of the services provided to be rendered herein, shall in no way be the obligation or the responsibility of the City. ill connection therewith, the Bureau hereby agrees to indemnify, save and hold harmless, and defend the City and all of its officers, agents, and employees from any and all claims, demands, actions, or causes of actions of whatever nature or character arising out of or by reason of the execution or performance of the services provided for in this Agreement. 8. Multiple Citv Participation. It is contemplated that the Bureau in addition to providing services to the City, will also provide similar services described in Paragraph 2 of this Agreement to other communities and that all cities may be jointly promoted as a unitary convention and visitors bureau. Therefore, it is specifically authorized that funding such joint promotion will be fmanced pursuant to this Agreement. 9. Discrimination. The Bureau, in providing services hereunder shall comply with the provisions of Minnesota Statute, Section 181.59 as the same may be amended from time to time. The Bureau shall not discriminate against any person or firm in any of its activities pursuant to Minnesota Statute, Section 181.59 which is incorporated into this Agreement as though set forth in its entirety. 3 10. Insurance. The Bureau shall carry insurance to cover its employees and agents while performing services pursuant to this Agreement. Such insurance shall provide comprehensive general liability and property damage coverage to the Bureau and its employees and agents in such amounts as will equal the applicable limits ofliability to which the City may be held pursuant to state statute as the same may be amended from time to time. The Bureau shall also carry Worker's Compensation as required by Minnesota Statute, Section 176.182 and provide the City with proof of compliance with Section 176.182 before commencing to provide services thereunder: 11. Laws. The Bureau will comply with all applicable Federal, State and local laws in the performance of its obligations hereunder. 12. Advertisement. All brochures, listings, or advertisements of specific . lodging facilities shall include mention of all facilities paying the lodging tax imposed by the City. . 13. Integration. This document is fully integrated, embodying the entire Agreement between the parties. Any amendment to this Agreement shall be in writing and executed in the same manner as the Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. CITY OF ARDEN HILLS. B/rr:~ 4~~~?~ By: {V\ ~ J4))nPk MINNEAPOLIS METRO NORTII CONVENTION AND VISITORS BUREAU By: a~ 12. ~ Its: President ff~J:Je J"h ! ~ ,/b' l;l~^-4 MISSION ( Visit MiDneapolis North exists to implement promotions and to attract visitor spending to contribute to the economic growth of its eleven Member Cities. The mission of Visit Minneapolis North is principally targeted to the following objectives: 1. To make prospective visitors aware of the eleven member cortnnunities and their attractions as part of the greater Minneapolis/St. Paul metropolitan area 2. To promote the eleven member communities as a good place to stay when visiting the Twin Cities, including the easy acCess to the Twin Cities from our representative area 3. To promote the meeting and convention facilities available in the eleven member communities and actively solicit meeting, conference, and convention business. 4. To attract .and promote sporting events at the National Sports Center and other regional facilities. . 5. To work with other Metro and State Convention and Visitors Bureaus, the Minnesota Office of Tourism, and other private and public organizations to generate a positive impact in the area for tourism, meetings, and sports. Anoka - ArdenHills - Blaine - Brooklyn Center -Brooklyn Park -Coon Rapids Fridley - Ham Lake- Maple Grove - Mounds View - Shoreview ( ( I